Tyson Foods generated a solid start to QQ1 2025 with revenue of $13.623 billion, up 4.2% year over year, and meaningful improvements in profitability metrics. Gross profit rose to $1.095 billion, a 26.4% year‑over‑year increase, driving a first‑quarter EBITDA of $946 million and an operating income of $580 million (operating margin ~4.26%). Net income reached $359 million and diluted EPS rose to $1.01–$1.03, supported by favorable mix and pricing as well as ongoing cost discipline. Cash flow remained robust, delivering $1.031 billion of net operating cash flow and $760 million in free cash flow, underscoring Tyson’s capacity to fund capital allocation, dividends, and share repurchases while maintaining liquidity.
Key Performance Indicators
Revenue
Increasing
13.62B
QoQ: 0.43% | YoY: 4.22%
Gross Profit
Increasing
1.10B
8.04% margin
QoQ: 3.30% | YoY: 26.44%
Operating Income
Increasing
580.00M
QoQ: 10.48% | YoY: 85.90%
Net Income
Increasing
359.00M
QoQ: 0.56% | YoY: 147.59%
EPS
Increasing
1.03
QoQ: 0.00% | YoY: 151.22%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $13.623B (+4.22% YoY; +0.43% QoQ). Gross Profit: $1.095B (+26.44% YoY; +3.30% QoQ) with gross margin ~8.04%. Operating Income: $580M (+85.90% YoY; +10.48% QoQ). Net Income: $359M (+147.59% YoY; +0.56% QoQ). EPS: $1.03 (GAAP) / $1.01 (diluted) (+151.22% YoY). Liquidity: cash & equivalents $2.292B; current ratio 2.11; quick ratio 1.04; cash ratio 0.48. Leverage: total debt $9.811B; net debt $7.514B; interest coverage ~4.83x. Cash flow: operating cash flow $1.031B; capex $271M; free cash flow $760M. Payout: dividend payout ratio ~48.7%; share repurchase $15M.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.62B
4.22%
0.43%
Gross Profit
1.10B
26.44%
3.30%
Operating Income
580.00M
85.90%
10.48%
Net Income
359.00M
147.59%
0.56%
EPS
1.03
151.22%
0.00%
Key Financial Ratios
Gross Profit Margin
Weak
8.04%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
4.26%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.64%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.96%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.94%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.11
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.53
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
14.33x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.11x
Price-to-book ratio reasonable for profitable companies
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